House Bill No. 5057 introduces new regulations regarding exclusive contracts for municipal solid waste management services in Texas. It adds Section 363.120 to the Health and Safety Code, defining an "exclusive contract" as an agreement between a public agency and a privately owned solid waste management service provider that grants exclusive rights to provide certain services within the agency's jurisdiction. The bill mandates that public agencies entering into such contracts must provide notice that includes a summary of the contract's purpose, a description of any changes made, and the impact on other service providers operating in the jurisdiction. This notice must be published in a local newspaper and on the agency's website, and it must also be sent to any registered service providers.

Additionally, the bill stipulates that existing service providers may continue to operate under their current contracts until they expire or until two years after the notice is published, whichever comes first. It also allows uncontracted service providers to continue their operations for 60 days following the notice if a public agency enters into an exclusive contract with another provider. However, the provisions of this section do not apply to solid waste management services provided by a municipality to annexed areas. The new regulations will only apply to contracts entered into after the effective date of the Act, which will take effect immediately if it receives a two-thirds vote from both houses of the legislature, or on September 1, 2025, if not.

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